My Twitter feed has been dinging all morning. Emails have come flying in. What’s the news?
Well, the Federal Reserve cut the short-term interest rates by 3/4 of a percent this morning. It’s the biggest cut they’ve made in more than almost 20 years, and they set up an emergency meeting to do so. Stocks have been taking a dive this morning, which is going to push up investment in bonds and, subsequently, real estate.
This is going to impact you if you’re buying a home, because as short-term rates DECREASE, long-term rates (for things like mortgages) increase. It’s being bantered about that we may see long-term rates hit 2002 and 2003 lows, but it’s likely too early to make that call.
Consider locking a rate today if you are buying a home in the next three months. Call me at 540-998-4731 and I can help walk you through the process, it’s VERY easy.
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